Chapter 1
The Impact of Quality Cost on Total Quality Management
The Case of Private sector in Bahrain
Introduction:
The few past decades have witnessed unlimited number of changes in the business and organizational contexts due to the numerous modifications that took place in the world markets and economies. One of these changes must have been the openness of the global markets and becoming one market. This forced almost every company to do its best to produce the best products that grant this company a good position in the global market. And thus they achieve high profits in addition to the best image and reputation for this company. This can be the stem upon which quality of the products were built.
Significance of the study: The current study is shedding light on two of the most important recently used concepts in the domain of organizational management which are: COQ or Cost Of Quality and TQM or Total Quality Management. These two concepts are highly related with making the consumers of products and services satisfied. This would ultimately bring good position
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This created great pressures on organizations and made them willing to create and innovate so that they can gain competitive advantage over their rivals in the world markets. Adding quality to the final products may be one element that attracts and satisfies the customers. However, elements there have been numerous elements or factors that started to occur in the management and organizational domains. These included TQM or Total quality Management and COQ or Cost Of Quality. These concepts and more became dominant aspects that required concentration from companies. TQM is not only a strategy to be applied; it is an approach of management that must prevail all over the whole organization. The practices of the TQM are essential to exist in the
The Total Quality Management ( TQM) can be defined as the holistic approach for the long term success which can be visible in the ongoing development in every aspect of the organization process. The overall transformation of the organization can go through various changes in different systems, structures, practices and the attitudes.
Total quality management can be defined as a system of management that is based on the principle that every staff member needs to be committed to maintaining standards of work in every aspect of a company’s operations. This form of management is done in order to make sure that the entire organization can excel as a whole when it comes to the products or services that are important to the customer. Subsequently, this form of management has two fundamental operational goals. These goals are; careful design of the product or service, and ensuring that the organizations systems can produce the design at a consistent rate. What makes these two goals so important is the fact that they cannot be accomplished without the entire organizations unity. Furthermore this is how the term total quality management, was established.
Quality management is an act that monitor all activities that needed to maintain and sustain high quality output, continuous improvement of process and product to a desire level of excellence in order to create customer satisfaction (Flynn, Schroeder, & Sakakibara, 1994, p. 342). Nowadays, increase in globalization and international trade had led to the increase of competition in the global market. The increase of competition had forced companies to focus on the concept of quality in their business and discover that effective quality management can increase their competitive advantage in the global market (Anderson, Rungtusanatham, & Schroeder, 1994).
In this argument, I will exhibit the process of the total quality management within the Fox Car Rental, Inc. and the Apple, Inc. Firstly, I will provide a history of both companies and the industries of which they are involved. Secondly, I will provide a meaning of the term total quality management, and argue how this system is integrated into both the Fox Car Rental, Inc., and the Apple, Inc. I will also describe the total quality management process that is implemented in these organizations, and the effects of this systematic management process of both companies. The Fox Car Rental, Inc. and the Apple, Inc. will also be compared against the principles of the ISO 9000:2000 quality management process, and among each other. I will also provide recommendations for the development of the Fox Car Rental, Inc.; an organization of which I was recently an employee.
Total Quality Management (TQM) is a long-term process the involves commitment, at all employee levels, and continuous improvement as to how activities are managed and controlled by organizations to present quality goods or services that satisfy internal and external customers' need and expectation(Miller, 1996). TQM is a bundle of tools, techniques, processes, principles and experts practices that over the years has been evolved and improved(Shiba,Graham and Walden, 1993). To name a few, researchers who significantly contributed in evolving TQM philosophy and practices, and tool and techniques are: Walter Shewhart, Edwards Deming, Joseph Juran, Armand Feigenbaum, Philip Crosby, Genichi Taguchi, and Kaoru Ishikawa (Boyer and Verma, 2010). In spite of differences in their TQM philosophy approach and definition, the fundamental principal goals of all TQM are the same. Oakland's idea of TQM does not differ either in that TQM objectives are fulfilled by realizing
Total Quality Management (TQM) is a management approach to optimization (Anvari, Ismail & Hojjati, 2011). TQM is defined as an approach to management characterized by some guiding principles or core concepts that embody the way the organisation is expected to operate, which, when effectively linked together, will lead to high performance (Eriksson & Garvare, 2005). According to Radnor (2000) “TQM is the management of quality at every stage of operations, from planning and design through self-inspection to continual process monitoring for improvement opportunities”. Some argue that TQM is corporate culture characterized by increased customer satisfaction through
Total Quality Management or TQM is a management strategy to embed awareness of quality in all organizational processes. The philosophy of TQM goes back to the 1940's when Dr. Deming started his quality endeavours in Japan and has steadily become more popular since the early 1980s. Then fore, The Japanese became so proficient at quality management that their success was a catalyst for Western companies to adopt the philosophy and practices.
It is unpromising to comprehend the total quality management phenomenon, emerging in the twentieth century, and to acknowledge its competitive advantages and obstacles, unless the underlying philosophy of quality is examined.
Total Quality Management (TQM) is an improvement tool that is widely used in many companies. It consists of many aspects including Managing people as well as business processes in order to maintain customer satisfaction. With TQM, Businesses starts to do the right thing from the start and to ensure zero error. Therefore, it is important to learn the principle of TQM and how it acts in organizations with its advantages and disadvantages.
Introduction - Total quality management (TQM) has been defined as ‘continuous improvement of every production output whether it be a product or a service, by removing inefficient variations and by improving the backbone of the work process’. International managers like their domestic counterparts have found that incorporating the notion of total quality management into their management process and style can give the competitive advantage.
Quality management, used by many companies, has a specific meaning within many business sectors. The quality management doesn’t especially promote a good quality for a firm, but rather to ensure that a product or organization is consistent, can be considered to have four components: quality planning, quality control, quality assurance, and quality improvement. Quality management focuses not only on product or service, but also in the way to
This paper is about Total Quality Management (TQM). There are several parts to this paper that will now be outlined. First, Total Quality Management will be defined. Second, a description of the impact of globalization on quality will be discussed. Third, traditional management styles will be compared and contrasted with management styles focused on quality. Fourth, an explanation of how TQM should apply to my organization will be discussed.
The cost of quality (COQ) by definition, is the cost that is resultant of bad quality or the cost of implementing quality systems to ensure good quality within an organization [1]. The concept of quality saving money, time and effort was advocated by Phil Crosby who strongly contributed to quality management theory and famously stated that ‘Quality is free; it’s non-conformance that costs’ [1]. Furthermore, poor quality has been shown to be common and costly amongst various industries [2]. The positive and encouraging evidence for implementing COQ programs, to ultimately produce higher quality services or products while saving resources, is widespread and abundant. Successful examples are numerous and include Motorola, Xerox and Westing-house; companies which have cut quality costs by 30% to just 2 and 3% of sales over a period of time in endeavour to gain a competitive advantage on the market [2]. Despite the obvious benefits of assessing quality costs and implementing quality measures to provide better
Montclair State University School of Business, Upper Montclair, New Jersey, USA The Evolution of Total Quality Management Any attempt at understanding TQM and applying it meaningfully in building a healthy market-driven organization requires an awareness of its evolution as an interdisciplinary model for managing organizations. For the uninitiated and, to a lesser extent, those reasonably familiar with it, the semantic jungle of acronyms developed thus far can be so mindboggling as to inhibit successful utilization of what many view as the appropriate paradigm for the twenty-first century. From its earliest roots, developed by Walter Shewhart at
Quality Management within any organization is important because it will guide the organization to success. The goal that the organization is looking to accomplish will heavily depend on what quality of service is offered to the customers. Managers, who provide quality service will increase the level of satisfaction to the customers. Businesses aim to provide the highest level of quality service and products to their customers. In this paper the student will compare and contrast two organizations, one in global market and one in the domestic market. The use of quality